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lori: good afternoon. welcome to another hour of market now. i am lori rothman. melissa: good afternoon. i am melissa francis. lori: from 30 to three legacy airlines dwindling as we await a merger between american airlines and u.s. airways. melissa: the hottest thing on the nasdaq stock exchange may be the nasdaq itself. charlie gasparino is here as they talk to go private. lori: without any further ado, let's get you updated on the markets. we are joined by lauren simonetti.
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>> i want to particularly take a look at goldman sachs right now. hitting a new annual high. the investment bank says that equity markets kind of went too fast. they will slow down a little bit on their global theme. however, maintain will be tough. it is just too hard to maintain. we have the strongest start since the 1990s. melissa: oil prices rising for the first time in days. fox business contributor phil flynn is our man in the pits of the cme. >> what a reversal.
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oil prices were below $95 a barrel. everyone thought that they would start coming back down. a lot of focus, of course, a lot of talk about these currency wars. they have a major impact on the price of crude oil. we do not think that the euro is too strong and anyone who wants to tell us otherwise, you will have a problem. we rallied in a few seconds. the euro when positive. when that happens, of course, oil prices saw a lot of profit. melissa: you look at that bounce. where do you think it from here? >> i have to believe that this is a short-term pop. the fundamental seasonally and
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technically are very bearish on oil right now. if we pull our heads, this is just one comment. melissa: thank you so much for that. gas prices have been climbing for three straight weeks. it is up $0.27 a gallon. energy analyst is the analyst for the schork report. >> what is causing it now is a rash of refinery outages. both here on the east coast and west coast. quite frankly, the market is fearful about the availability of supply. this is what is driving the market up in the near-term. the fear is that oil prices in
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general are about 15% lower at this point this year and then they were relative to a year ago. retail gasoline prices are higher at this point. the january gasoline contract expired a few years ago. where it expired implies in the cast market, we can still see another 15-20% rise in gas prices. melissa: there are so many things that are lining up not great. gas prices, we usually have a quiet january. that did not happen. it seems like, prices at the pump are going even higher from here. >> right now we need to see a material correction in crude oil prices to have any chance of seeing lower year on year gasoline prices.
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the odds of that are not good. crude oil prices, as i said, are about 15% cheaper this year than they were last year. last year, prices were artificially high. prices in the summer collapsed. if we do not see a similar correction in crude oil prices this summer, they have to translate into higher gasoline prices. the real big concern, melissa, is what we may see this year relative to what we saw in 2006. we do not have enough refinery capacity in this country. we have been running our units at very high utilization rates. stephen, let me ask you, we were just reporting last week, you say we do not have enough capacity.
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how is that possible? wouldn't it be so valuable that somebody would want to purchase it? >> absolutely. the people ttat bought those refineries here in philadelphia -- they are having their own problems making money. it is good to be in the refinery business. here on the east coast, the global price of oil is 15-$20 a barrel higher, the margins simply are not there. the consumer paying $3.50, likely going to four dollars, they may not like to hear that. a refinery simply cannot make money. now we are on this hamster wheel where prices are going higher and refineries still cannot make
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money. we do not have any short-term solution to this. going into the summer, yes, consumers are probably looking at higher gasoline costs. melissa: thank you for coming on. learning from the pros. it is graduation day for entrepreneurs in cleveland. goldman sachs is leading the charge. connell: liz claman goes one-on-one with ohio's senator. that is on what washington needs to be doing to help. ♪
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♪ lori: it is time to make money with charles payne. he has a stock pick that will make you go nuts. charles: diamond foods. you guys remember this? it was a huge saga. this stock in september 2011 was $90 a share. take a look at it now. here is the thing, at some point, these are products that we all know. we all know that these are products that are out there. it is a trust issue. a lot of people are saying we do
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not know when to get into this. i have to tell you, i have seen these accounting scandals and stocks never come back. i think, if they can start to squeeze these, there could be a huge percentage gain. their markets are looking pretty good. they have to get back with these farmers. they have to do a lot of things. i think they are on track. the man who runs the company ran hostess. he got a nice severance package from hostess. anyway, he is there now. it is one of these very high risk corporations. lori: in some ways, you could look at it like a consumer
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staples stocks. charles: this is an extraordinarily hot company. to having said that, they do have products that we do by and we do enjoy. they have their work cut out for them. lori: do they make pistachios? i have been having this running debate. can you eat the ones that are closed? charles: you can. lori: it does not mean that they are undercooked or underprepared and some white? it generated from the super bowl commercial. speaking of the super bowl, we have some breaking news. charles, thank you. melissa: 28 million americans tuned in to cbs for the awards
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show. you can see cbs stock. lori: they had to dress in drab clothing. melissa: it was that memo about covering up. that is what it was all about. [talking over each other] cheryl: they were in black gowns. covered head to toe. [ laughter ] melissa: justin cooper lake was awesome. i watched it. cheryl: lori: let's get to the markets. melissa: lauren simonetti is on the floor of the new york stock exchange. >> i was in bed. let's take a look at some solar stock. they are all popping big time today. first solar, the big winner in
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the group. first solar is a dominant player in the large scale utility market. all of these stocks are down considerably over the last 52 weeks. down 30, 40, 50, 60 or more percent. they are getting a little bit of an uptick now. a lot of european governments cutting back on their funding. we will take it because overall stocks are down. back to you. melissa: lauren, thank you so much. charlie gasparino joins us with breaking new details. lori: the lights are coming back on in the northeast. let's take a look at how the dollar is faring against its major trading partners.
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it is a little weaker against the euro. we are back after this. ♪ ♪ [ male announcer ] how could switchgrass in argentina, change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. >> announcer: you never know en, but thieves can steal your identity and turn your life upside down. >> hi. >> hi. you know, i can save you 15% today if you open up a charge card account with us. >> you just read my mind. >> announcer: just one little
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>> good afternoon. i have your fox news minute.
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president obama has extended his prayers and appreciation for pope benedict. he is citing his age and failing strength as his reason for resignation. pope benedict will step down after eight years as pope. a suspected gunman and two women are dead after shots were fired this morning inside the lobby of a delaware court house. our local affiliate is reporting that the gunman was at the courthouse for a child support hearing. his estranged wife was one of the people that were killed. cleanup is underway this morning in mississippi after an overnight tornado. at least three overnight tornadoes tore through that city. they had at least 100 homes and buildings. no fatalities have been reported. more than one thousand people are now injured. those are your headlines. that to lori and alyssa.
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lori: thank you, heather. melissa: graduation in february. liz claman is live with rob portman. liz: that is senator rob portman family business. you know all about small businesses and certainly the challenges. goldman sachs saying we are stepping up this business. >> it is great for this area. we now have additional skills and knowledge to go out and create jobs. they are adding employees.
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small business is the backbone of our economy. it is where you see most of the new jobs created. the skills that they have gotten here allows them to focus on their financial planning, marketing planning and so on. now they can go help other small businesses. liz: they are giving advice that is very much real world versus simple. sitting in the classroom. the ohio business on what we have seen everything from installation companies to steal bar companies to, actually, a tavern that has done very well. >> my job as their senator is to say congratulations.
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on regulations on energy policy. all of this affects them. liz: one of the things that i have seen here are businesses that popped back up after the financial crisis. you look forward and you say, what can we do out of washington, d.c. you used to head the office of management budget. melissa: that was liz claman talking to mr. portman. they were talking about some really inspirational stories. people getting up and running and making our economy work. it was very windy. our satellite was not working very well.
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liz claman is on all day today. she will be speaking live with gary. lori: ennobled by hurricanes sign -- what are they warning about with regard to san diego? liz: up to 2 billion could be taken back. they are talking about layoffs at the faa. federal prosecutors getting laid off at the department of
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justice. also, tens of thousands of and naa jobs. the thing with that is we do not know if it is pork that they will pull back. on top of that, you see their cuts of 168 million. i will tell you something, when i looked for the memo, i did not see anything about retitle but reform. already we have congressmen saying if you just lay off 10% of the workforce, that will take care of the spending cuts coming. we were hearing about the layoffs of the federal workers. it has grown since 2008.
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lori: -- >> by putting the human face on this, by putting sandy into the mix, they are saying, hey, do you really want to have these spending cuts? there is no proof of how they arrived at these numbers. we do not know how they arrived at these numbers. we do not know if it would have been. you begin to hear that d.c. was a view from the recession. that is the flipside. melissa: you do not want to hear about anyone losing their job. lori: thank you so much. melissa: the lights are back on for most customers that were affected by this weekend
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blizzard. most of the outages are in massachusetts. 110,000 there. in connecticut, power is almost restored completely. one utility company which serves cape cod, one of the hardest hit areas, says it may be thursday before power there is fully restored. lori: what a tough season it has been. so many places have been brutalized by this winter. personally, i have been brutalized by all the cute pictures of the kids in the snow. too little bundled up kids. melissa: it is you. i like it. totally. lori: i guess you have to make lemonade out of lemons. travelers brace themselves. we will tell you what the deal
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could mean for ticket prices next. melissa: the latest on the cruise ship stranded in the gulf of mexico. take a look at who is off into is is down on the dow as we head out to break. ♪ what's next?
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melissa: welcome back. time for stocks as we do every 15 minutes. let's head to the floor of the new york stock exchange. lauren simonetti standing by and watching blackberry for us. >> i am. to iphone or to blackberry, that is the question. many people like me have both. not the case at home depot. the company is giving its corporate managers, lots of
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its directors, iphones instead of blackberrys. home depot's stock as you can see behind me is down 1% accounting for some weakness on the dow which is down 29 points right now but this terrible news for blackberry which shares are sharply lower, nearly 4% as i speak because they have the new blackberry 10 operating system out. they have the new blackberry z10 phone that looks very much like an iphone without the traditional keyboard coming on the market next month. now we have another company, home depot, switching over to the iphone. back to you. melissa: interesting. lauren, thanks so much. >> sure. lori: all right. when my next guest started in the airline business decades ago there were at least 30 different carriers. but within american, us airways merger deal likely to happen soon he says there will be only three legacy airlines left. does this consolidation mean major air fare hikes? tom parsons, founder and ceo of nice to have you joins us. i suppose we're joining you
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too, tom. >> okay. lori: "wall street journal" is saying the merger announcement could come as early as wednesday or thursday of this week. what will it mean for flyers in these upcoming months? >> well, actually it will take us down, just over the last few years we saw delta, northwest. we saw united-continental. if this goes through, american and us airways. now we have six, where we had six different chiefs out there making decisions on pricing and air fares and rules and those, now we will have three. so it is easier for collusion and things in the airline business. again if you live in a small regional airport not served by a low-cost airline you will probably end up paying a little bit more. even if you are in a hub like, you know, could still end up paying a little more with the merger but i think the big issue over the next few months is not so much this merger but if you go six months ago we were paying $80 a barrel fuel. now hovering almost like 100. that is our biggest eni, not
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this merger but the price of fuel will make air fares go up. lori: when you use terms like collusion it sets off an alarm. the regulators have to have something to say about this. i know you're raising the fuel price issue. fuel prices are high these airlines can't merge, right if they get into cahoots about raising air fares much higher than they already are? >> again, in this case look at the crossover. u.s. and american have very little crossover. this is probably one of the few i've seen in a long time i don't see that much. you may have hub cities you will see crossovers but american is very weak on the eastern part of the united states. us airways is probably in central america and parts of mexico and also deep south america and places like that. i don't really see where the department of justice will be able to say much. when you look at all three of these devices they're only going to be a small percentage part, with american will be 2% bigger. maybe united will be two or
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three percentage points bigger than delta. lori: give some perspective, tom. where is air fare today versus this time last year say, and how high do you expect it to rise even if percentage terms? >> if you go back let's go back 10 years or back to 2000, that is probably one of our worst years. right after 2001 we had many coast to coast fares in the 198 range. today if you're a large metropolitan city like boston, new york, washington, d.c., fort lauderdale, orlando, you can still go coast to coast today on a good day, maybe for 300, 320 some dollars and that's, you know, in 13 years seeing fares go up 50% is not that bad. dallas-ft. worth, chicago, can get to the west coast 238, 258. it is those small regional airports like al ban in, new york, or hartford or greensboro, north carolina. those airports are getting beat up and paying as much
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as 100 or $200 more than a nearby airport. lori: got it. i have to run, tom, considering we have you, with the blizzard in the northeast last weekend how hard were the airlines hit with all the cancellations? >> if you look at sandy there was 20,000 flights canceled. this was close to five or 6000. i think, i saw the planes coming. everything seemed to be getting back to norm. i would say by tuesday or wednesday this week they will have everything in order. again we'll see how many passengers just completely canceled. so the damage is going to there but nothing compared to sandy. lori: thanks a lot for your perspective and your analysis. tom parsons. >> thank you. melissa: so more trouble for carnival cruise line. its ship, the triumph, has been drifting out to sea after an engine fire this weekend. the ship was on its way back to galveston, texas. it is carrying 4200 passengers and crew. carnal expects the coast guard to be on the scene today to assist in the towing. the ship will be brought to the closest port in mexico
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and should arrive on wednesday. thanks to generators there is plenty of power and food on board. this comes a little over a year african val's costa concordia sank and capsized off the coast of italy. with everything going on trading less than a full percentage point. we've heard reports of people on board upset and frustrated. lori: understandably show. melissa: makes you think twice going on a cruise. lori: charlie gasparino breaking new details. market shares hit highs not seen since 2008. he is here with a exclusive details. melissa: need a kick first thing in the morning? the new push for a caffeine filled liquid breakfast. ♪ . tdd#: 1-800-345-50 this morning, i'm going to trade in hong kong.
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better licensing terms for sports programing, violating a so-called most favored nation clause in their distribution agreement. premium cable network starz and sony pictures extending their exclusive agreement five years giving starz the right to sony movie releases through "20/20" one. this comes two months after starz was outbid by netflix for walt disney movies. makers mark bourbon is planning to cut the alcohol content by volume in its formula by 3%. the company says the decision is due to rising global demand for the bourbon, demand is exceeding its ability to produce it. that is the latest from the fox business network, giving you the power to prosper.
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melissa: so you heard it here first on fox business. nasdaq and carlyle group held talks to take the big stock exchange private. what was behind the move? charlie gasparino, who else. has all the exclusive
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details on the story he broke. >> well, my then is interesting because nasdaq is kind of the odd man out in this whole sort of debate about what's the future of these exchanges. melissa: you said that many times. that's true. >> yeah. they have done dances with the lse, the london stock exchange. done dances with trying to go after the new york stock exchange in a hostile bid. that was shot down by regulate, to. now they're kind of out there alone. we know the new york stock exchange just teamed up with the intercontinental exchange. that's a big player. now it is clear that nasdaq has to do something. one of those somethings we were first to report earlier today was that nasdaq held what was described to us preliminary deal talks with the carlyle group, the big private equity firm essentially take nasdaq private. we report those talks broke down. what we got from some people involved in the deal that there was a disagreement over price. there was due diligence done but there was disagreement over price. i will tell you this. i have a sneaking suspicion what is much more than price. what i know about bob
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griefeld, the ceo of the nasdaq. he is very good manager. he is an amazing cost cutter but he wants to run whatever iteration nasdaq finds itself in future. when you go private this is different than a dell deal. this deal or at least these talks were spurred by dell. a lots of cash out there. easy to get debt financing that is how come dell, how many could you can do a deal like the dell deal. michael dell is worth $15 billion. he has his own skin in the game. he remains in control of that. i don't know how much money bob greifeld has. could he arrange a similar deal where he takes it private and takes control? dell put in 750 million. does he have a big chunk of change to put into this deal where he remains in control? i have a feeling that was behind this. but the bottom line is this, these talks are not going on right now from what i understand but i know nasdaq remains open to this sort of stuff because they have to. analysts that tell me nasdaq
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will find it very difficult to remain both difficult and a public company. keep in mind bob greifeld tried to change their business model a bit, what does an exchange do? matches buyers and sellers of stocks. you get to list your stock on the exchange. get your primateur if you listed on new york stock exchange or nasdaq, eight times out of 10, 80% ratio that stock would trade, would be matched when you have a buyer and seller of that stock on that exchange. obviously the stock exchange would get a fee for that. that does not happen because of black pools and the disintermediation of the market because of rule mns you can trade your stock anywhere. can trade it on the goldman sachs computer system that is what goes on right now. that business is going away from the exchanges. that is hurting them financially, no doubt. why new york did the deal with the intercontinental exchange which is mostly in derivatives and other products. nasdaq is facing that. bob greifeld is trying to go into information services.
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remember they bought the thomson reuters corporate information services business, pr and all this stuff which they're going to try to like, sell to their listed clients. so he is trying to remake it as kind of a data hub. difficult transition to make as a public company. that's why you go private. at least that's the theory. we'll see what happens. if you own the stock, i can only tell you this. i don't tell you to buy or sell, if i owned nasdaq i know something is going to happen. not telling you to buy or sell but that something usually means you take it private, it gets merged, something will go down here. he may try to buy something. i don't know if he has the currency to do it but this is where he are right now. this is an interesting story. melissa: yeah. lori: cash generator maybe you answered this glazed over my head? >> i think i didn't. record quarter revenues and record equity this quarter. lori: that is why he would be interested in it? >> yeah. make some bucks t has this business model problem.
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why do you go private. why does michael dell go private? michael dell, they make money. they don't make as much money in the past. they have to retool. melissa: you need to reorg some way and you outlined. >> can you reorg at a public company with quarter after quarter of pressures by reporters to perform but your shareholders. melissa: the tiniest cut the stock is back too 2008 highs. that is only thing goes against the whole private equity idea. you hate to come in when something is pretty expensive. >> all the stock exchanges went up on the -- nyse. >> nyse-ice deal. they're all theoretically in play. when you talk about price that might have been the sticking point still a deal's a deal. my view this thing isn't just price. i don't know for sure. my gut, it is bob wants to be independent. i don't blame him. he built that place in a lot of respects. he built the modern nasdaq. what is nasdaq right now?
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omx. in order dick exchanges, the philadelphia stock exchange and bo boston stock exchanges. that is the modern nasdaq. he feels he should be running it in some way. melissa: charlie gasparino. thanks for that. great reporting. lori: let's go to the floor of the new york stock exchange with lauren simonetti. google is selling today and watch this one. >> ties into nasdaq where it trades. the stock is down 1% as we speak. the former ceo a rick schmidt, selling more than 40% of the his stake in the company. that could be a $2.5 billion windfall for him. you have to ask themselves are investors nervous as they are today? according to web bush securities analyst james dicks says he is not worried. he would be more worried if larry page or sergey brin the cofounders started to sell shares. they each own 8% of the country. back to you. lori: thank you, lauren. pepsi is about to kick-start your morning with a new beverage called appropriately enough,
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kick-start. has mountain dew flavor but made with 5% juice. melissa: whoo-hoo. lori: as well as extra jolt of caffeine. melissa: thank goodness. lori: the 80 calorie drink has less caffeine than monster and red bull. none of the controversial ingredients. are you sure? it has energizing orange citrus and energizing fruit punch. the 16 ounce cans will be available in stores nationwide. shares of pepsi off 33 cents today. about one half of 1%. melissa: i like that, i would try it only because i would be curious, 5% fruit juice. there is a juice beverage for the morning. not really. lori: get your vitamin c. melissa: i'm much better with coffee. lori: don't knock coffee. that is my vice. melissa: all right. next in line at the fed, federal reserve chairman ben bernanke's rumored successor, vice chairman janet yellen speaking today in washington. we'll tell you why she thinks the economic recovery has been so slow. lori: iphone, ipad, now
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maybe i-watch? we'll see what is up apple's sleeve next. ♪ . there is no mass produced human. so we created the extraordinarily
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lori: federal reserve chairman ben bernanke has less than a year left in his term and many suspect vice-chair woman janet yellen will be chosen as his replacement. peter barnes is in washington as yellen speaks out on the economy today. peter? >> that's right, lori, yellen is the most obvious
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pick to replace bernanke for most happened coopsers should the president not ask chairman bernanke to agree to a third term. a well-known dove at the fed. less concerned about inflation reigniting. more concerned about jobs and getting unemployment down through aggressive fed policies like qe forever. the additional quantitative easing the fed launched last month. yellen is wrapping up a speech on the job market at the afl-cio. chairman bernanke was at the white house last week to chat with the president it turns out and obama aide says it was just a check-in meeting that they do from time to time. no word if they discussed a third term for the chairman. some fed-watchers think bernanke would stay for a third term if the president asked him. another says to also watch jeremy stein, the harvard economist the president appointed to the fed in late 2011. other potential bernanke replacements, fed-watchers say former vice chairman don kohn and another former vice
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chairman, ronald ferguson who runs the pension fund for college teachers and administrators, tiaa cref. lori? lori: good stuff, peter. thank you. >> okay. melissa: apple is looking to explore new territory, your wrist. the text giant is experimenting with a watch-like product according to manufacturer foxconn according to "wall street journal" a variety of wrist-worn gadgets measuring physical activities have been released by jawbone and nike and pebble technologies. analysts predict apple's will have variety of function. the watch is expected to be more practical than phones or computers in certain situations and function closely like the iphone. lori: no way you could type e-mail. melissa: talk into it. lori: siri function. melissa: sounds really cool. lori: i don't know if i can see you. better be fashionable if you're going to wear it. melissa: there you go. coming up tonight on "money",
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gene sperling, the director of the national economic counsel under president obama joins me to discuss the sequester and the chances that washington will resolve it, 5:00 p.m. eastern right here on fox business. that should be a good one. lori: coming up here we have trading time left to go on this monday afternoon despite stocks hitting multiyear highs. one big money strategist says they're still undervalued. he joins tracy byrnes and ashley webster next on fox business. finishing up this hour with the dow down 35 points, keep it here. i'm a conservative investor. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costsown. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses.
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read and consider it carefully before investing. risk includes possible loss of principal. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.
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4. melissa: looking at a market sagging a little bit here. down 31 points on this monday. everybody is talking about the grammys. lori: sunday leftovers. what did you guys watch last night? melissa: watch the grammys. lori: a little bit of both.
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lori: everybody for the most part followed the wardrobe guidelines. melissa: it was very boring. everyone was covered up, beyonce. no wardrobe malfunctions. melissa: i got to tell you, first time ever, not looking at fashion because everyone was wearing like curtains from their back room. it was more about the performances last night. i mean, adele, all do respect, did you pull that off the table cloth? melissa: i thought it was a laura ashley handbag. lori: ratings were down from last year. melissa: because of the clothes. [all talking at once] melissa: we need a whole show to talk about carrie underwood's dress. that blew my head off. totally weird. anyway the dow is down 32 points. i'm tracy byrnes. lori: i'm ashley webster.
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non-grammy news. dow is up 6% for the year. is there more upside heed or has the rally run out of steam. one big money manager is who is still betting on stocks will be here in just moment. >> pivoting back to the economy again? where the heck was before? president obama's state of the union gameplan reveals a you are return to the biggest issue the campaign but have the american people heard it one too many times before? lori: new evidence that companies hoarding cash are ready to spend it on new technology and equipment. which companies will benefit and can investors get in on the action? baron's senior editor jack hough is here with his picks. melissa: first the top of the hour. we have to go down to lauren simonetti on the floor of the new york stock exchange as we do effort e every 15 minutes. hey, lauren. >> hey, tracy and ashley. we're searching for a catalyst, failing to find one. the nasdaq is down seven points but retreating from
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friday's close, the highest close in 12 years. of course the s&p 500 is up 6% this year. that is pulling back a little bit. the dow, failing to hit that 14,000 level. in terms of stocks moving to the upside, nasdaq, big move, hitting an annual high just moments ago. now up more than 3%. our charlie gasparino of course reporting that nasdaq was in talks with carlisle to go private. just honestly weeks after the new york stock exchange agreed to be bought by intercontinental exchange. so that is the news there. the stock definitely popping on that. back to you. melissa: thanks, lauren. we'll see you back in 15 minutes. lori: well, the s&p 500 is negative now but it did touch a new multiyear high earlier in the session. that is just one reason my next guest is shifting back into stocks, the great rotation it's called. he says those stocks are still undervalued. joining us now, michael jones, riverfront investment group chairman and cio. michael, thank you for joining me. i was reading your notes. you say that, to you, bonds
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are a mystery at this point. you've removed long maturity investment grade bond and emerging market debt from all of your portfolios. so is the big rush just into equities at this point? >> well, i think the rush is just beginning. if you go back to that mystery in bonds, i mean i understood why rates crashed down into what i call the panic zone, below 2% on a 10-year treasury back in 2011. we've been spending about three years between 1 1/2 and four, excuse me, between 2 1/2 and four thanks to zero interest rates and qe. and then when the ecb backed off on supporting spain, when we had our near default based on the debt ceiling fiasco, okay, it makes sense to go into a panic zone, drop down to 1 1/2 to 2% on a 10-year. fast forward 18 months we've resolved the debt ceiling issues and the fiscal cliff to boot. the ecb has done a 180 on supporting spain.
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the equity markets have more than fully recovered and yet bonds are still mired down to 1 1/2 to 2%. if this is year people wake up and say rates are too low for the conditions. lori:. lori: do you believe the markets are undervalued. many are near 52-week highs. many all-time highs but you still think there is value? >> we look long term people get obsessed with numbers on the s&p because that is where we peaked back in '99 and 2000. they assumed it was overvalued there because it was overvalued then. in our price matters '99 and 2000 that was 100% overvalued. that happened four times in history. every time that's happened you spend about 12 to 14 years chopping sideways. we're getting to the end of that. on that same 1550 type level
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we're now thinking it is 10 to 15% undervalued. why would that be? well earnings have more than doubled in that 13-year period. ashley: so where, i'm an investor. i'm getting out of bonds. i want a slice of this action. where do i put my money? >> well, where we put a good chunk of our incremental dollars is in developed international. they have somewhat been left behind in the big rush to u.s. equities and there's some reasons for that. obviously japan has had troubles for 20 years. europe has its unique debt crisis but we believe some of those policies are rapidly changing. importantly in japan with the recent leadership change at the bank of japan, everybody in japan is on board for a weaker yen. and that means a higher nikkei. if you go into japan on a currency hedge basis, we did that about three months ago after being underweight japan for years. it has been a great trade. we think it has a long way to run. europe is one of the cheapest markets out there
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based on our price matters framework. you're starting to see real movement on labor market reform there. even elon, -- hollande, biggest committed social a alist in labor policies he is losing in confrontations with mittal and peugeot. ashley: we have 30 seconds left. you like high volatility, u.s. large cap equities. what are you talking about? >> well, these are basically all the stocks that have an objective measure of their high volatility. they're very risky. it tends to be financials, tends to be industrials and materials and so forth. these are the names in all the economic uncertainty have been unloved for the last three or four years in the rally while people are focused on dividend oriented things like utility. they're undervalued on our analysis. if we're right about the economic environment starting to stablize some of that undervaluation will close in the coming year. ashley: very good. lots of information.
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michael jones, thanks so much for joining us. we appreciate it. >> my pleasure. tracy: here at home, president obama's state of the union address tomorrow night. he is expected to pivot back to the economy. this sound a little like yogi berra's deja vu all over again. you're not alone. rich edson in washington with the details. rich, where has he been that is not on the economy. >> well the administration says the state of the union will be a focus on jobs and the economy as the president has been discussing for the last couple of weeks and real emphasis on gun control and immigration reform and a second inaugural address was more about overreaching defense or overarching defense of liberal policies and progressivism. the prompted the republican national committee to say obama is pivoting back to the economy for the past five years as the white house has announced that as a focus repeatedly. >> right now our number one focus has to job jobs, jobs,
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jobs. and encouraging business investment. i think we are past the crisis point in the economy but we now have to pivot and focus on jobs and growth. my principled focus, my number one focus is going to be making sure that we are competitive, that we are growing and we are creating jobs, not just now but well into future. you know at a time when our economy is still recovering from the great recession, our top priority has to jobs and growth. >> now the white house disputes the pivot and says the president's focus on the economy has been a constant. >> there is no pivot here. the president's principled preoccupation since he ran for this office, beginning in 2007 has been you know, what we need to do to make our economy work for the middle class. >> much like the answer robert gibbs gave when he was press secretary all the way back in 2010 when he was
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asked the exact same question. back to you. tracy: that's the thing. are we going to hear anything new from the president tomorrow because it seems like it is a bunch of deja vu all over again? >> every time we get this supposed pivot or refocus to jobs in all the times we've seen this in the headlines for the most part the president's proposals on the economy have basically fit a very similar theme. we expect to hear very much of that we heard in his weekly address over the weekend. that is essentially, spending on infrastructure, spending on green energy, on manufacturing, and to pay for that at least in part with higher taxes on wealthier americans and corporations. this time through the closing of loopholes. but that's why we tune in, to hear the specifics. back to you. tracy: thank god for you, rich edson. we'll see you soon. >> thanks. ashley: why did we pivot away from the economy in the first place? anyway, coming up, new warning about credit report errors. might make you want to check yours. details ahead. tracy: plus the woman who could become the next fed chairman. janet yellen has been called
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a fed dove. what would that mean for fed policy? but first as we do every day at this time of day let's take a look how oil is trading. it is up about a 1.96 dal. $96.77 a barrel. we'll be right back. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]'ll bust your brain box. ♪
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tracy: that time of day to make some money with charles payne. this hour he has a russian search engine. charles, you've been on this international tour with us by the way. i mean like -- >> new guinea. that was on --. tracy: i have to bring my world map next time you come. >> you guys have trace and ashley, i go right to the globe and spin it. close my eyes. russia. let's do the search engine in russia. ashley: doing really well. >> it is really doing well. they have have a 61% market
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share. the russia is growing. did an ipo in 2011. the stock peaked out at 40 bucks or something like that. it is interesting in the last quarter they released chromium, like google chrome but chromium. tracy: that is ingenius. >> listen, guys i really like it alot. look across the board. last quarter revenues were up 41%. 202,000 advertisers. that was up 28% suggesting some pricing power. up 5% quarter over quarter. they're doing all kinds of different things. it is one of these names that doesn't fly around a lot. baidu the, chinese one, flies around all over the place. that is fun ride if you hang in there and not get spooked out. they have a partnership with turkey and the czech republic and partnership with twitter f they break out real soon this could go 25 to 30. ashley: a lot of people love the layout of this product. put in a question, they love the way it's laid out. what is yandex? does that stand for another
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indexer? >> i don't know. is that it? that is yahoo! is spanish for yet another higher --. tracy: you can buy on nasdaq, no problem. what are you getting out at? >> breaks out at 25. target would be 30. if it broke out at 25, went to $27.38, believe me i take it there too. my target is 30. but if it stalls i will take it. tracy: charles, see you tomorrow. i will have my map. ashley: bring the atlas. thank you, charles. retail sales this week will give us our first indication how consumers are reacting to higher taxes and lower pay. i can tell you what their reaction is. which retailers should you buy into ahead of the report? sandra smith has the story in today's trade. sandra. >> perhaps the biggest number to watch this week is the government retail sales data that is out on wednesday. right now economists are forecasting a gain of just .1 of a percent for the month of january. that would be pretty dismal after we all saw our
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paychecks decrease as a result of the payroll tax cut increase. people were out there spending less. take a look how some of the retailers are re. reacting. we got international shopping centers numbers. department store chains were doing well. macy's was up 12% in the month of january. nordstrom up 11%. kohl's up 13%. look at the stock of the major department store chains. kohl's has been doing very well. department stores fell out of style the past couple years. they're making a major comeback in 2013. the reason i point out kohl's, guys it is very cheap heading into the retail sales number on wednesday. price to earnings just 11. macy's price to earnings, just 12. they were below 15. where the concern, guys, discount retailers, big ones like wal-mart we don't get numbers like we did last week from wal-mart and target. wal-mart up 4%.
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target are up 6%. when people cut back on paychecks and shrinking they're much more careful at those stores. tracy, ashley, those will be numbers to watch. ashley: very good. >> thank you. ashley: thank you, sandra. tracy: it is quarter past. it is time to check on the markets. we go back to lauren simonetti on the floor of the exchange as we do every 15 minutes. >> hello. we're taking a look at boeing shares. the dow component is down a little bit today. not too much. there will be a second test flight of a 787 dreamliner to figure out what happened, what the issue is with those lithium-ion batteries that caused the fires and essentially the grounding of all 50 boeing 787 dreamliners. moments ago boeing released its annual 10k. they're unable to estimate what their loss would be as the flights are grounded. we already know japan airlines is saying they will take a 8 million plus dollar hit in quarter ending march because of the grounding of the planes. they have to figure out what the problem is. they will continue to do
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that. boeing making comments on sequestration and how that will affect them as well. but for the year, stock is basically up 2%. since it has been grounded it is relatively flat, slightly lower. not really being affected by the news of the dreamliners. back to you. ashley: grounded and flat. there is a correlation there. >> you would expect it to be down more, right? it is really not. ashley: yeah you would. tracy: figure out the battery already. lauren, we'll see you in 15 minutes. >> okay. tracy: it is graduation day for some goldman sachs new programs. goldman sachs has a new program helping small business owners and liz claman will introduce us to two graduates next. ashley: very good. first, let's look how the good ol' u.s. dollar is doing right now. the dow is drifting lower but the euro up against the dollar but all the other occur ren sis down against the greenback. we'll be right back. this is $100,000.
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tracy: pope benedict's announcement that he will step down at the end. month surprised catholics and others around the globe. fox's amy kellogg is in rome. will pope benedict i am become the first pope since 1415 to actually resign, amy? >> tracy it is amazing and
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it is shocking people because it is something simply not done. it is something that is okay to do but people were really taken by surprise. the prime minister here, mario monti saying he was shaken by the announcement. catholics interviewed across the globe in latin america and elsewhere, many were actually disappointed and felt let down. others say that it took and you have awful lot of courage for the pope to make this decision and he was brave to doit and frankly if he feels he doesn't have the physical strength particularly or the mental and emotional strength to meet all the challenges that are demanded by the job leading 1.2 billion catholics around the world, leads such a big church, he was right to actually do this. he had a very hard act to follow, coming in as the oldest pope to be elected, nominated to the job following the footsteps of pope john paul ii who of course was terribly
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charismatic and loved but the pope benedict filled in a lot, traveling a lot and helping with important issues in the church. in a month or so we'll have a new pope, tracy. tracy: amy kellogg. this is historical stuff. father john was on "fox & friends." very humbling that he admitted he can't do it. he has got to step down. ashley: has to take courage has not been 600 years since a pope done that. tracy: he would have gotten away staying to the end. ashley: maybe but he doesn't want. a film critic blasting the star of a new hollywood hit for being fat. that is not stopping her from guiding this film to victory in this weekend's box-office. dennis kneale on the story joins us now. dennis. >> sweet vindication for melissa mccarthy. the rotund and rambunctious comic actress in first starring role, in the universal film, identity thief. this on the road comedy dominated weekend box-office with a robust 30 significance million take.
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far higher than forecast. $36 million. the top five films, zombie romantic comedy, warm bodies came in second. less than hatch of what identity thief stole at the box offers. her box-office win could kat at that put her from ensemble character actor to a true star. this blistering review from the critic, rex reed. gray head of bitchy critics, called it a bunch of junk. who knew he was still alive. he called her cacophonus and tractor sized and female hippo that was obnoxious and obese all in 504 words. want to ask rex, what did she do on him, step on his foot? he got pilloried because of his anti-fat creed because some of us in america are fat. wait a minute here. melissa mccarthy is getting work entirely because she is fat. her struggle is a part of
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her character in mike and molly on cbs. she plays it hilariously in the other breakout film, bridesmaids. she is the female fatty arbuckle. if he make as joke of her extra wide size. why is rex reed guilty of acknowledging the same? ashley: she is laughing all the way to bank. tracy: yea, melissa. that is all i have to say. ashley: jason bateman. he great in the movie. thanks so much. >> thanks, guys. ashley: coming up what is your credit score? are you sure that it's right? that is the critical question. gerri willis has shocking details of a new study by the federal trade commission. tracy: as we head out to break let's look at some of today's winners and losers on the s&p 500. first solar that is a charles payne favorite, up 6.7%. we'll he will be right back.
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tracy: it said that small business is the backbone of the u.s. economy. if that is true, they are standing tall in cleveland where 36 small business owners graduated from goldman sachs's 10,000 businesses programs where they got to learn from the best about how to grow and survive. and our very own liz macdonald is in cleveland, standing taller, sitting exclusively with them. she has two grads ready to take on the world. hey, liz. >> just really watch this because they may see their own aspirations or their own small businesses reflected in this. i want to introduce you to two graduates today. we're here at cuyahoga community college which has been in a way turned into goldman sachs university. goldman's 10,000 business programs where small businesses --
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[inaudible] tracy: she is in. she is out. ashley: all about. we'll go down to lauren simonetti now. we'll head back to liz claman. ashley: weather isn't always great this time of year in cleveland. tracy: there is that. lauren simonetti down on the new york stock exchange standing by. lauren, the dow is down 29 points. i don't think it moved since we started talking. >> no catalysts today, tracy. we have jonathan with meridian now. one of the reasons for this stalled market the lack of chinese movement, right? stock markets are closed. >> absolutely. the stock markets are closed there. that is had a global effect all the way around. when our markets are closed europe and asia are quiet also. i don't think anyone is taking on any risk or taking off any risk in anticipation what can happy later on this week when the asian markets open back up again. if you look at our economic calendar there is not a ton. retail sales. initial claims coming out later on this week. it will take a little bit of a spark to really get
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investors off the sidelines back into the market this week. >> are you watching the president's state of the union tomorrow night? >> first speech in second term, it will be interesting to see his tone, his direction, knowing now that he is locked in his next four years and doesn't have to worry about year five. >> so we have that. we have retail sales wednesday morning, and in the meantime we've got a stalled market. back to you. tracy: thank you, lauren. thanks john too. >> thanks, jonathan. tracy: we'll try to go back to liz claman and her graduates in cleveland. liz, are you there? >> yes. i did so well with that intro. let's get to it. thank you so much. got a little bit of wind here in cleveland. what a shock. we have david and patty of fab craig group are two graduates from goldman 10,000 businesses. first of call congratulations. >> thank you. >> that is amazing. you both applied to this. you had your businesses up and running through thick and thin. david what did you learn that is so much different
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than you learned when you got your mba because you have got an mba? >> the opportunity i gained the ability to work on the business and not in the business. the ability to take myself out of the day-to-day operations to work on growing the business instead of fighting fires of daily business. >> isn't that when you run a small business about fighting the fires? >> it is but you need to find a way to let the business run itself and work on the business to make sure it starts to grow. >> patty, did you have that experience? what was the most important thing you learned? >> one of the most important things i learned was developing a culture in my company and set your core values and your mission statements which i didn't have previous to that. and then i put, posted those up as i learned that in one of the modules. employees were coming to me, saying, oh, is this what we're doing? they had no vision in the company and i gave them the vision. >> it is an 11-week program. as i said not easy to get into because who wouldn't want that sort of real world experience from, the program put together by goldman sachs, harvard business school but babson, which is
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one of the highest, most respected business schools out there. what was the process like? >> it was great. >> they take us through nine different modules. at the end of the modules culminate understood a growth plan to put in action right away. we're able to do that at federal gear. it has been a good experience. >> isn't it part of, rail as i call it that sort of pitch, here is what my business does and how you do it? you make the industrial metal teeth, both small and large for all kind of industrial applications, correct? >> sure. we do. and the pitch we've given, it form ad pitch that is very difficult to describe what we do. so federal gear, we cut teeth. very simple. we cut teeth. >> that's right. there you are. and you as well, you make architectural metal for everything from banisters to balconies, correct. >> that is correct. >> tell me since you guys have been in this program, have you seen any difference when it comes to hiring, when it comes to revenues, patty? >> yes. i've had an 85% growth in my
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business and i have hired five additional people. >> that is too much of a commercial. that is unbelievable. what about you, david. >> we put the growth plan in place, in 2013 we've seen $100,000 of incremental revenue. >> how is that possible? what is the secret sauers. >> you have to committed to program and your business. you use the skills from the program. take it apply to the business and you can grow. >> what do you say to goldman sachs is a at business to put half a billion into this program? cleveland is one of 11 cities? they didn't have to come to cleveland. they picked cleveland of the doesn't hurt that the president of goldman sachs, by the way, gary cohn is from cleveland. i think they looked at this area and said this is an opportunity. this isn't young whippersnapper startup territory. this is real business. does that say something about the stick-to-itiveness of the business heart in cleveland? >> i believe so. it is definitely on the rise and it's growing and i'm so
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happy that goldman sachs had the confidence in us to pursue this with us. >> well, we expect to see great things from federal gear and fabrication group. anybody needs metal teeth or industrial and architectural metal in cleveland go to these two. as i mentioned gary cohn the president of goldman sachs will join us live 4:00 p.m. eastern time in a wide ranging interview about the 10,000 business program. taking what normally would be a company like goldman which always does gigantic deals, really focusing on small business, making an effort to create jobs in this nation. on top of it, we'll get to the good stuff. what does he think about equities and treasurys. he is an old commodities guy. we'll ask him about commodities and much, much more. 4:00 p.m. eastern, a sit-down long form interview with gary cohn. 3:00 p.m. eastern, the storm, nothing got hit here in cleveland but cleveland's business which is a huge one, first energy, millions of customers up and undo the
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northeast coast got affected by the storm over the weekend. we've got the ceo, tony alexander, live in a fox business exclusive. a lot happening here in cleveland. we'll see you in a bit. tracy: thank you very much, liz claman. we'll see you soon. ashley: breaking news, look at oil closing up for the day. up $1.31 at $97.03 a barrel. that is a gain of more than 1%. oil is starting to pick up more gains. a new warning about your credit report from the federal trade commission. gerri willis is here with the commission. it is kind of disturbing to say the least because so much rides on your credit report. >> everything rides on your credit report these days, whether you get a loan, what you pay for the loan, sometimes employment. a lot of things at stake here. federal trade commission says 5% of consumers have errors that could lead, could lead to them paying more for products that is not a great hit rate for people that have to rely on the reports. this is the interesting thing about the study. they do the study every two years, literally nothing
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happens but they do the study. what they did, they went through the whole process. so people who had mistakes, surveyed 1,000 people. they complained. tried to get a correction. one in five got a correction. four in five got some kind of modification. one in 10 saw a change to their credit score. so the big problem, if you do have a mistake in this --. ashley: doesn't get fixed. >> getting it fixed. as you see people have a lot of trouble with this. what you really need to know, aanual credit to get the free credit reports. you hear little jing else about, songs, names on tv. annual credit if you want free ones. no one will solicit you there. tracy: the worst, everyone is trying to fix their credit report under the gun when they try to get a mortgage and never have time to get it fixed. >> should do it today. tracy: not that i'm speaking from experience or anything. there's that. >> anybody can have mistakes on their credit report that result in a real problem. you don't have to be somebody that. ashley: you're guilty until proven innocent on these
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type of things. >> the people make money off your information but you never get anything for that. that is the part that fires me up about it. ashley: talking about there tonight. >> i am indeed. ashley: very good. i had a feeling you might be. thanks very much. don't miss "the willis report" at 6:00 and 9:00 p.m. eastern here on fox business. tracy: pay attention to that. so coming up is california wasting millions of dollars on frivolous lawsuits filed by get this, prisoners? no surprise. judge andrew napolitano wants to weigh in on this next. ashley: got nothing else to do, right? tracy: right. ashley: first as we do every day, check the 10 and 30-year treasurys. 10-year yield is dropping, 1.95%. just one basis point and 30-year, 3.15%. we'll be right back. did you know not all fiber is the same?
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>> i lori rothman mature fox business brief. amr and u.s. airways will be meeting for a possible merger. the airlines are looking to have a deal for friday with nondisclosure agreement signed by some amr bondholders. in a fox business exclusive, charlie gasparino learned the group helped millinery discussions with the carlyle group about going private. charlie gasparino said it happened three weeks ago but broke up because of price. they say they do not comment on rumors and speculations.
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carlyle group had no comments as well. lots of $32,000 in the third quarter after taking a hit by higher losses of hurricane candy. that is the latest from the fox business network giving you the power to prosper.
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>> so now, a multimillion dollar's battle over california budget woes and prison population. get this, california has spent $200 million on inmate lawsuits over the last 15 years. why do they have a right to do this? governor jerry brown calls it on a prison lobby of lawyers and court appointed experts. he said we have hundreds of lawyers wandering around the prisons looking for problems. fox news judicial analyst andrew pollack on all has a lot to say
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about this. how do they have any rights at this point? >> they're complaining not about the settlements of the lawsuits of the damages the government has to pay because of the harm caused to prisoners in jail, he's talking with the government paying legal bills and the lawyers to represent the the prisoners and the legal bills of experts appointed by the court to see if there is really a case. if you and i sued each other, the process of you learning about my case in my learning about yours is called discovery would be conducted largely by our lawyers under supervision by the court. in the prisoner sues the prison system because neither side has a reputation for truth, this process of exchanging information does not occur voluntarily, it is under the eyes of the watchdog appointed by the court the state has to pay for. that is what he is complaining about. if the corrections officers
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behave the way they are supposed to and were truthful in litigation, there wouldn't be a need for the special supervised litigations. it is a court system and legislature that invites litigation and rewards you when you win and doesn't even punish you if you file frivolous litigation. i will sue the court in federal court, creamy peanut butter. and with that my bunkmate squirted his toothpaste into my eye and i lost sight because the prison doctor didn't leave me and wouldn't give me medication, so some of it is frivolous and some is dreadfully serious. the courts have actually behaved as watchdogs making a prison
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management transparent and answerable to the court. there is no public policies. ashley: the lawyers wandering around looking. >> they can't literally wander around because they don't have permission to do that, but the prisoners who have been in jail for longer than a couple of months, long-term institutions know there are court host lawyers available, some of them are inmates, some of them are lawyers on the outside who do this for a living, but if the public policy of california permitted the courts to dismiss frivolous litigation on the outside and punish lawyers who filed for those litigations, which a public policy, governor brown would have nothing to complain about. he can change that, but he has chosen not to. tracy: this is good stuff. ashley: appreciated. a quarter until, stocks every 15 minutes, let's head down to
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lauren simonetti. lauren: wendy's getting a nice pop today. an article essentially saying wendy's has rrmodeled stories, this of course as mcdonald's is struggling from last week, same store sales. wendy's is a big winner today. this is constellation brands down 1.5%, filed a motion to intervene in the government lawsuit to block anheuser-busch. this stock is a loser, but we have to talk about the owner of bourbon. they are watering down, can you believe that? such global demand for bourbon right now, they don't have enough of it, they have to start last in the alcohol content.
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tracy: there are lots of bourbon drinkers right now. cashing in, investors can profit from a surge in new spending on software and other equipment. ashley: the winners and losers on nasdaq as we head out to break. we will be right back. all stations come over to mission a for a final go. this is for real this time. step seven point two one two. rify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.
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ashley: federal reserve chairman ben bernanke's term is almost often has a lot of speculation as to who could replace him if mr. bernanke doesn't seek another term. one of the frontrunners of the vice chairwoman.
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what does that mean for the fed policy? peter barnes is in washington with the details. peter: steady as she goes. the obvious pick to replace ben bernanke for most of the handicappers should the president not ask the chairman to agree to a third term, current vice-chairman as you said and less concerned about inflation reigniting, more concerned about jobs and getting unemployment down through aggressive federal policies, giving a speech on the job market at the cio today, and in fact said with unemployment still high and inflation low, it is appropriate fed policy targeted at job creation takes center stage at the fed right now despite concerns on reigniting inflation. ben bernanke chatting with the president, saying just a chicken meeting from time to time, no
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comment from the fed or the white house on whether they discussed the fed chairman sticking around for a third term. some fed watchers think ben bernanke would say the president asked him, but another says to keep an eye on jeremy stein. the economist pointed to the fed in late 2011. other potential replacements that watchers say, ferguson. ashley: interesting, indeed. thank you so much. tracy: companies are sitting on record levels of cash. our next guest says they're finally putting it to use by spending on machines and software and other equipment. jack, it is actionable, but what you're seeing are these companies bring the dividend
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thing, repurchasing, kind of nothing left to do. >> they don't have a way to earn higher return on their cash, they have a problem on a trillion dollars in cash right now. have a good-sized tax break for spending the money on equipment they can expand their business. for some companies this is a safer way to do it than hiring. hopefully the hiring will be down the road but that increase in revenues for companies that sell this equipment. tracy: are we building plants and factories or just machines? >> we're not talking about toner cartridges, this is big-ticket items, tractors, new factories and sometimes the technology infrastructure, a new farm, things like that. what you find in past cycles with a capital spending increases, you find stocks do very well, but in particular industrial companies, energy companies, technology companies,
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their shares tend to do the best. tracy: that is what you found. not necessarily hiring humans yet, but buying stuff. although if this stuff is that technologically advanced, they don't need us anymore. cameron international. >> everybody is in a scramble to increase production with oil prices where they are. they're going into buildings as well, so their bookings are at an all-time high, this court are making excellent margins right now. tracy: and storage systems. >> tied for number two in this -@business, but the they're seeg very good things. companies need to spend on storage, they have been under investment. they can gain market share and be in the right place at the right timm. tracy: another in the industry. >> they make microchips.
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i don't know which ones will do well, for this company makes the test equipment and matter which chip maker thrives to improve the yield. tracy: this is engineering for plants and things like that. >> when you need a bridge, an oil refinery, something big and very complicated, they're the company that you call one of the biggest in the business. >> are they passed their prime? >> they are attractively priced right now, solid balance sheet, that kind of growth. tracy: this is awesome, thank you very much. ashley: chock full of information. google chairman eric schmidt is cashing out announcing he will sell $2.5 billion worth of company stock. currently owning 6.6 million shares planning to sell 3.2 million through a stock
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trading plan in red with gray filing. that is so 42%, about 1% of the total company, google says the sale is a long-term diversified assets to the question is what is he going to do with all that cash? he can do anything he wants. tracy: a guy like that needs it for upkeep. i don't think there is a lot left. if you are broke like me, it is really easy. the dow down 32 points, cheryl casone will take if the last hour of trading with the seo of red hat. talk about the software maker's big push into cloud computing. "countdown to the closing bell" is next, don't go anywhere. ♪ [ cows moo ] [ sizzling ]
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more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade.
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Markets Now
FOX Business February 11, 2013 1:00pm-3:00pm EST

News/Business. Business news. New.

TOPIC FREQUENCY Us 20, Cleveland 14, Goldman Sachs 13, Lauren Simonetti 9, Liz Claman 8, Washington 8, U.s. 8, Charlie Gasparino 8, Dell 8, Ben Bernanke 6, Lifelock 6, New York 5, Benedict 4, California 4, Lauren 4, Obama 4, Gethelp 4, Janet Yellen 3, Ashley 3, Google 3
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